Strategic Innovation in Small Firms: An International Analysis of Innovation and Strategic Decision Making in Small to Medium Enterprises

Small to medium sized enterprises (SME) comprise 99% of all firms across the OECD group of advanced economies and contribute between 50% and 75% of all value adding. They are a critical component with in the national economies of their home countries and are often the source of new products and other innovations. Research by the OECD suggests that on average small firms do not innovate as much as their larger counterparts and those that do tend to be “gazelles” (fast growing new firms) often in the high-technology sectors. However, little is known about the ordinary small firm and how it innovates.

This project draws together participating researchers from 11 OECD countries who have used a common methodology to collect 567 cases of small firms engaged in the commercialisation of an innovation. The focus of the study is on the following:

Characteristics of the SME sector in each country

Characteristics of the National Innovation Systems that support these firms

Strategic risk assessment in early stage commercialisation

Strategic decision making in innovation within the SME

Strategic management of commercialisation within the SME

Strategic networking and alliances in SME innovators

A presentation of the findings was given at the Academy of Management Conference in Montreal, Canada 6-10 August 2010 in a seminar entitled: “Strategic Innovation in Small Firms: Lessons from Innovative Companies within the OECD”.

This multinational study overviews strategic innovation in small firms and the National Innovation Systems that each country seeks to build in order to support them. Using case studies and survey data the book examines innovation in each country. The micro-enterprises of the Flemish Creative Sector are examined along with small firms from the fashion industry in Milan, Italy. Innovative small firms from within a technology incubator in the United States are examined, as are manufacturers and biotechnology firms in Australia. The innovative small firms of France, Switzerland, Austria and Canada are also examined along with their perceptions of the national climate for innovation.

Publications

A range of publications have been produced from this research study and are listed below from most recent to earliest: